Washington, DC – On April 5, 2012, the President signed the Jumpstart Our Business Startups Act (JOBS Act) into law. Among other things, the bill raised the shareholder registration threshold from 500 to 2,000 and increased the deregistration threshold from 300 to 1,200 for banks and bank holding companies. Unfortunately, the JOBS Act did not explicitly extend the thresholds to savings and loan holding companies (SLHCs). However, it was not the intention of Congress to treat SLHCs differently from bank and bank holding companies.
The Holding Company Registration Threshold Equalization Act of 2013, introduced by Representatives Steve Womack (AR-3), Jim Himes (CT-4), John Delaney (MD-6), and Ann Wagner (MO-2), extends the shareholder registration thresholds to SLHCs.
The original sponsors released the below statements:
“The JOBS Act gave community banks the flexibility they needed to raise capital without having to comply with the onerous SEC regulations intended for larger banks,” said Womack. This bill extends the same flexibility to savings and loan holding companies ensuring that they – along with community banks across the country – can deploy capital throughout the communities they serve.”
“This bill will ensure savings and loan institutions operate under the same rules as local banks,” Himes said. “This will help S&Ls raise capital so they have the resources to make the loans consumers need to purchase homes, cars, and other large items they are more likely to finance than buy outright. As we seek creative solutions to the nation’s jobs crisis, we should do everything we can to stimulate the consumer demand we know is essential to a robust economy.”
“I am extremely pleased to work with my bipartisan cosponsors on The Holding Company Registration Threshold Equalization Act,” said Delaney. “Positioning small businesses to succeed is central to my competitiveness agenda. After working with entrepreneurs across the country during my business career, I know that our Main Street businesses need a healthy, diversified, well-regulated financial sector that includes community lenders. Increased thresholds for SLHCs and thrifts will help them avoid expensive and unnecessary reporting requirements associated with SEC registration, which is essential to their ability to provide their clients with capital.”
“The JOBS Act was an important bipartisan success of the previous Congress,” Wagner said. “This legislation would expand the scope of the JOBS Act and give community-based savings and loans a greater ability to raise capital and serve their customer base. At a time when our economy is struggling, reducing outdated regulatory burdens on small financial institutions can help increase lending, grow businesses, and create jobs throughout our economy. I look forward to working with my colleagues on both sides of the aisle to advance this legislation in the 113th Congress.”